RBI raises AFA limit for recurring e-mandates to ₹15,000
No longer current — withdrawn, no replacement on file yet
RBI's own words: “With the issue of these directions, the instructions/guidelines contained in the following circulars...stand repealed” — RBI/DPSS/2026-27/396
Source: Reserve Bank of India · RBI/2022-23/73 · issued 16 Jun 2022 · ~2 min read
Quick answerRBI has increased the Additional Factor of Authentication (AFA) exemption limit for recurring e-mandate transactions from ₹5,000 to ₹15,000 per transaction, effective immediately. This applies to cards, PPIs, and UPI, reducing friction for higher-value recurring payments.
This change applies to e-mandates on cards, prepaid payment instruments, and Unified Payments Interface (UPI).
Banks and payment system operators can now process recurring transactions up to ₹15,000 without requiring AFA for each subsequent transaction.
How it plays out — a real example
Amit, a payments & clearing officer in Indore, can now process recurring transactions up to ₹15,000 for a customer's insurance premium payments without requiring additional authentication. This streamlines the customer experience and reduces friction for higher-value recurring payments.
What changed
The AFA limit for subsequent transactions under the e-mandate framework has been raised from ₹5,000 to ₹15,000 per transaction. This change applies to e-mandates on cards, prepaid payment instruments, and UPI, and is effective from June 16, 2022.
What it means for you
Banks and payment system operators can now process recurring transactions up to ₹15,000 without requiring AFA for each subsequent transaction, streamlining customer experience for subscriptions and standing instructions. This may increase usage of e-mandates for higher-value recurring payments like insurance premiums or utility bills, but lenders must ensure robust customer protection mechanisms remain in place.
Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.
What banks were required to do at the time
Update your systems to apply the new AFA limit of ₹15,000 for recurring e-mandate transactions on cards, PPIs, and UPI.
Review and communicate revised transaction processing rules to relevant teams, including customer support and compliance.
Ensure customer grievance and dispute resolution processes are aligned with the updated limit to handle any issues arising from higher-value recurring transactions.
Who it affects
All Scheduled Commercial Banks, Regional Rural Banks, Urban Co-operative Banks, State Co-operative Banks, District Central Co-operative Banks, Payments Banks, Small Finance Banks, Local Area Banks, Non-bank Prepaid Payment Instrument Issuers, Authorised Card Payment Networks, National Payments Corporation of India
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
Does this change apply to the first transaction of an e-mandate?
No, the AFA requirement for the first transaction remains unchanged. The increased limit of ₹15,000 applies only to subsequent transactions in a recurring e-mandate series.
When does this circular take effect?
The circular is effective immediately from June 16, 2022, as it was issued under the Payment and Settlement Systems Act, 2007.
What types of payment instruments are covered?
The revised limit applies to e-mandates on cards, prepaid payment instruments, and Unified Payments Interface (UPI).
📜 This document’s life story (2 recorded events, each backed by RBI’s own words)
RBI’s words: “With the issue of these directions, the instructions/guidelines contained in the following circulars...stand repealed”
📜 Read the original circular — full text as issued by RBI
RBI/2022-23/73
CO.DPSS.POLC.No.S-518/02.14.003/2022-23
June 16, 2022
The Chairman / Managing Director / Chief Executive Officer
All Scheduled Commercial Banks, including Regional Rural Banks /
Urban Co-operative Banks / State Co-operative Banks /
District Central Co-operative Banks / Payments Banks /
Small Finance Banks / Local Area Banks /
Non-bank Prepaid Payment Instrument Issuers / Authorised Card Payment Networks /
National Payments Corporation of India
Madam / Dear Sir,
Processing of e-mandates for recurring transactions
A reference is invited to our circulars DPSS.CO.PD.No.447/02.14.003/2019-20 dated August 21, 2019 , DPSS.CO.PD No.1324/02.23.001/2019-20 dated January 10, 2020 , DPSS.CO.PD No.754/02.14.003/2020-21 dated December 04, 2020 and CO.DPSS.POLC.No.S34/02-14-003/2020-2021 dated March 31, 2021 (collectively referred to as “e-mandate framework”). The e-mandate framework prescribed an Additional Factor of Authentication (AFA), inter alia, while processing the first transaction in case of e-mandates / standing instructions on cards, prepaid payment instruments and Unified Payments Interface. For subsequent transactions with transaction values up to ₹5,000/- (AFA limit), prescription of AFA was waived.
2. On a review of implementation of the e-mandate framework and the protection available to customers, it has been decided to increase the aforesaid AFA limit from ₹5,000/- to ₹15,000/- per transaction.
3. This circular is issued under Section 10 (2) read with Section 18 of the Payment and Settlement Systems Act, 2007 (Act 51 of 2007), and shall come into effect immediately.
Yours faithfully,
(P. Vasudevan)
Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2022-23/73 · issued 16 Jun 2022. The plain-English explanation above is BankPulse’s own independent summary.
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BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12341&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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